Iron ore futures ended lower on Thursday, pressured by the increasing imposition of tariffs on Chinese steel exports. However, robust demand for the steel-making material in China, the world’s largest consumer, helped mitigate the downward pressure.
The most-traded May iron ore contract on the Dalian Commodity Exchange (DCE) fell by 0.8%, closing at 805 yuan ($110.77) per metric ton. Similarly, the benchmark March iron ore contract on the Singapore Exchange dropped by 0.93%, settling at $104.90 per ton.
The global outlook for Chinese steel exports remains uncertain as more countries enforce tariffs on Chinese steel products. Following U.S. President Donald Trump’s decision earlier this month to impose a 25% tariff on all steel imports, Vietnam introduced a temporary anti-dumping levy on Chinese steel. South Korea also moved to impose provisional tariffs of up to 38% on Chinese steel plate imports, while the European Union is considering further curbs on steel imports in response to Trump’s tariffs.
Despite these challenges, China’s steel industry shows resilience. The China Iron and Steel Association (CISA) reported that daily crude steel production among its member mills reached a seven-month high of 2.15 million tons in mid-February, according to Chinese consultancy Mysteel.
Moreover, Mysteel also noted that inventories of imported iron ore sintering fines fell by 3.8% week-on-week, signaling increased consumption of the key steel feedstock.
On the Shanghai Futures Exchange, steel benchmarks saw upward movement, with rebar climbing nearly 0.5%, hot-rolled coil rising 0.35%, wire rod edging up 0.54%, and stainless steel gaining 0.69%.
Other steelmaking ingredients on the DCE also saw gains, with coking coal rising by 0.87% and coke advancing 0.75%.
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